Flotation costs are usually ignored when computing the NPV of projects financed with newly issued securities.

Name: Flotation costs are usually ignored when computing the NPV of projects financed with newly issued securities.
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Flotation costs, which are the costs incurred in issuing new securities, should be taken into account when calculating the cost of capital for a project. Ignoring these costs can result in an inaccurate NPV calculation.

Flotation Costs Are Usually Ignored When Computing the NPV of Projects